Its tax season and black people, like most Americans, are either doing their own taxes or looking for a reputable firm to do it for them. Here’s a something you need to know; tax season is like Christmas for identity thieves and tax scammers. You’ve been warned!
Black people should be well aware that income tax preparer fraud is a serious threat to our community. Statistics show that people of color suffer far more damage from financial crime than whites. Our elders and black churches are coveted targets for financial scam artists.
Scams start as harmless looking ads in your local newspaper, junk mail or an email. It always looks legit and sometimes it is. But the reality is that you will likely be contacted by a tax scammer.
The hook that gets most African-Americans is always the same, money. We all want a bigger refund. But what do you do when you discover that your refund went to someone else? What if someone files a tax return in your name? Or what if you suddenly get W2’s in the mail for jobs you never worked? It’s called identity theft and plenty of people of all colors live through this nightmare every tax season. Please don’t become one of them.
Identity theft is when someone has enough information about you to successfully become you. This includes simple to get data such as your address, date of birth and phone number but the Holy Grail of identity theft is the Social Security number. Guard yours with your life!
Keep in mind that identity theft is a crime that does not go away easily. Most victims are repeatedly victimized over and over again. The criminal or criminals will use take over bank accounts, get credit cards in your name and use the stolen identity to open new accounts often months later. Keep in mind the time span from the time you discover your identity has been stolen to the day it is finally corrected could be a year or more. Another thing to remember is that African-Americans are more likely to be victimized by non-credit card identity theft. That means theft of utility services and telephone services as well as check fraud.
Last year the IRS paid out $4 billion dollars in fraudulent tax refunds and identity theft reports surged 66%. If you get a letter that the IRS has received more than one tax return with your name it’s powerful indicator your identity has been compromised. Call the IRS immediately!
The IRS has released a list they call the Dirty Dozen Tax Scams. And if you think you can’t be got think again. Take a good long look at what’s waiting for you if you let your guard down.
Another thing to look out for is the federal government impersonation scam. Let’s be smart here; the FBI, the IRS or any other government agency is not going send out an email or call you on the phone with a tax issue. And if, just if, someone does call; hang up then call back. Use a number you look up yourself. Never call the person at the number they gave you.
According to the Internet Crime Complaint Center thousands of Americans lose millions of dollars every year to tax preparer fraud, phishing attacks and government impersonation scams. Not to mention the agony of trying to re-establish your identity or credit. That could take years.
Black people need to be extremely skeptical of any financial transaction when it comes to revealing sensitive information. We need to report suspicious pitches when we hear one. One of the major problems in the black community is that we sometimes fail to report crimes when it happens, especially the kind that may embarrass us. That needs to stop.
